Tough economy leads many to seek budgeting advice

Greta Wham says the economic conditions are worst in decades for seasonal workers.

A RECORD number of people are seeking financial advice from a Hastings-based budget advisory service, its co-ordinator says, due to the toughest economic conditions she's seen in 20 years of operation.
Hastings Budget Advisory Service co-ordinator Greta Wham said the service, which is located on Warren St North and offers free budgeting advice, saw 113 new clients last month and 1000 new clients were predicted this year.
"They are record numbers. Times are harder than they used to be."
Many people who sought help from the service had lost their jobs or shouldered unmanageable loans, Ms Wham said.
"Sometimes it's the loss of a job. In Hawke's Bay, we have a lot of seasonal work. In the winter months, people find it harder to get by - it's not that people don't want to work. Many people who come to us, all they want is a job."
Salvation Army Hastings major Bruce Aldersey confirmed seasonal work could put people in financial difficulty.
Many people who came to the Salvation Army for assistance had been involved in seasonal work and hadn't anticipated the sudden loss of income at the end of the season, Mr Aldersey said.
Poor decisions were also a factor.
"Some people, due to the choices they make, have more expenditure than income."
Emergency food was available at the Salvation Army, for those willing to undergo an interview process.
Napier National candidate Wayne Walford said while some Bay residents were struggling, agencies such as the Hastings Budget Advisory Service made a difference.
"My sense of the region is there are definitely people in tough financial scenarios, but there's lots of agencies that can help."
Part of the problem was a stigma associated with being poor, Mr Walford said.
"It's hard to put your hand up sometimes, so people need a safe place to go where they can receive mentoring without judgment."
He wanted to foster opportunities on marae for mentoring in money management, as well as community projects like vegetable growing.
Napier Labour candidate Stuart Nash said a lack of employment opportunities, and "woeful financial literacy" were hurting families.
"There just aren't enough jobs as there used to be."
As manufacturing moved offshore, unskilled labouring jobs were disappearing, Mr Nash said.
"Most companies can't afford to continuously upgrade and when times get tough, they shut down."
Mr Nash said he believed education was key to improving conditions for families.
"Our curriculum needs to be looked at and adapted to the 21st century."
The country had woeful levels of "financial literacy" and many people lacked the skills to assess financial risk.
To remedy the problem, basic financial skills could be taught in schools from an early age. Asked if financial skills should be taught in schools, Ms Wham said "absolutely".
While the Hastings Budget Advisory Service could help people work with the money they had in the best possible way, it didn't work miracles.
The service also wasn't solely for people below the breadline.
"We see all sorts of people, not only down-and-out people but professional people, too."
Ms Wham understood it was difficult for people to reach out to the budget advisory service for help, but said it was better for struggling families to do so sooner rather than later.
"We don't make judgments, and we don't tell people what they have to do; we make suggestions."
"Come to us early, before things start to go wrong, rather than when you get desperate ... from our experience the longer you leave something, the worse it gets."